Correlation Between MCEWEN MINING and SLR Investment
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and SLR Investment at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining MCEWEN MINING and SLR Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MCEWEN MINING INC and SLR Investment Corp, you can compare the effects of market volatilities on MCEWEN MINING and SLR Investment and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in MCEWEN MINING with a short position of SLR Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and SLR Investment.
Diversification Opportunities for MCEWEN MINING and SLR Investment
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between MCEWEN and SLR is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and SLR Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SLR Investment Corp and MCEWEN MINING is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on MCEWEN MINING INC are associated (or correlated) with SLR Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SLR Investment Corp has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and SLR Investment go up and down completely randomly.
Pair Corralation between MCEWEN MINING and SLR Investment
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 3.15 times more return on investment than SLR Investment. However, MCEWEN MINING is 3.15 times more volatile than SLR Investment Corp. It trades about 0.04 of its potential returns per unit of risk. SLR Investment Corp is currently generating about 0.06 per unit of risk. If you would invest 520.00 in MCEWEN MINING INC on August 30, 2024 and sell it today you would earn a total of 265.00 from holding MCEWEN MINING INC or generate 50.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
MCEWEN MINING INC vs. SLR Investment Corp
Performance |
| Timeline |
| MCEWEN MINING INC |
| SLR Investment Corp |
MCEWEN MINING and SLR Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and SLR Investment
The main advantage of trading using opposite MCEWEN MINING and SLR Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, SLR Investment can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SLR Investment will offset losses from the drop in SLR Investment's long position.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB | MCEWEN MINING vs. Talanx AG |
| SLR Investment vs. ACCSYS TECHPLC EO | SLR Investment vs. TRADEGATE | SLR Investment vs. CARSALESCOM | SLR Investment vs. Vastned Retail NV |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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